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AI News: European Commission's Proposed a Regulation on Artificial Intelligence

Updated: Aug 26, 2021

In April 2021, the proposal for a Regulation on Artificial Intelligence (“AI Regulation”) was published by European Commission. This proposal is unique since it is the first legal framework on AI.

AI systems are no more fantastical, over and above, they are so common in our lives that almost everybody interacts with them somehow. For a basic example, e-commerce companies or streaming services use AI algorithms to analyze the historical data of users and recommend relevant content. On the other hand, AI systems are so sophisticated and efficient that they may harm individuals and their rights.

In AI Proposal, AI systems are categorized based on risks. In this context, several procedures for risk management and data governance are stipulated for providers according to the AI system’s risk level. For instance, there are strict obligations for high-risk AI systems. Furthermore, there are banned AI systems listed in AI Proposal, such as the ones that manipulate human behavior. Additionally, It is stipulated that breach of regulations will be penalized, moreover, in specified circumstances, huge penalties are suggested like 6% of annual global turnover.

The regulation proposes a regulatory scope like the one in GDPR. According to the proposal, AI Regulation applies to:

  • Providers placing on the market or putting into service AI systems in the Union, irrespective of whether those providers are established within the Union or in a third country;

  • Users of AI systems located within the Union;

  • Providers and users of AI systems that are located in a third country, where the output produced by the system is used in the Union.

Obviously, AI Proposal concerns a large group of people and companies. While technology changes our lives, it is good to see that authorities work for fitting digital age.


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